Project detail - KASLETI 2 LLC


Status: Completed investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

FMO’s client is Kasleti-2 LLC, the project company for a green-field hydroelectrical power plant. Estimated total project costs are USD10.1 million. The project has been developed by Hydrolea LLC.

What is our funding objective?

The objective of FMO’s financing is to fund the development, construction, and operation of a 10MW run-of-the-river hydroelectric power plant which will be located on the Kasleti river close to Khaishi village, in the Enguri valley, in the Mestia municipality in the north west of Georgia (the “Project”).

Why do we fund this investment?

FMO will fund this project as it provides an additional source of clean and renewable energy in Georgia. FMO provides a long tenor to a small scale hydroelectric power plant.

What is the Environmental and Social categorization rationale?

This is a category B+ project with potential limited adverse social and environmental (E&S) risk and / or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. EBRD is the E&S Lead and while this project has been screened against all Performance Standards, FMO’s E&S due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS 1 - Assessment and Management of Environmental and Social Risks and Impacts PS 2 - Labor and Working Conditions PS 3 - Resource Efficiency and Pollution Prevention PS 4 - Community Health, Safety and Security PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources The habitats present in the project area are not considered to be highly threatened or unique ecosystems.The Construction of the HPP will temporarily disturb fauna and may cause its migration from the project area. PS5 - Land Acquisition and Involuntary Settlement: Not applicable. No residential land plots and houses and no remote structures (barns on pastures etc.) are affected by the project and no physical displacement is envisaged. Residents of the villages Kvemo Tsvirmindi and Zemo Tsvirmindi are not losing private land, assets or sources of income related to land. The project will not increase landlessness or homelessness of local population. The project will not affect arable lands and annual crop production or fruit tree growing. No pastures are affected by the land take and no access to any pastures is blocked. PS7 - Indigenous Peoples - There is no record of presence of indigenous peoples in the direct or the indirect area of the project. PS8 - Cultural Heritage – No historical, architectural or archaeological sites were found in the project area. FMO will periodically review the project’s ongoing compliance with the Performance Standards.

Europe & Central Asia
Publication date
Effective date
End date
Total FMO financing
USD 3.50 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)